Core Insights - The article highlights the significant presence of Chinese anime games at TGS 2025, indicating a potential boom in the industry for 2026 with major titles like "Infinite," "Eternal Ring," and "Blue Star: Journey" set to launch [1][16] - The closure of the GiGO 1 building, previously a prominent advertising space for miHoYo, marks a shift in the landscape of the Akihabara area, contrasting sharply with the past dominance of "Genshin Impact" [1][29] - Despite the visible decline of miHoYo's advertising presence, its products remain popular in local stores, suggesting a change in strategy rather than a complete withdrawal from the market [6][11] Industry Dynamics - The surrounding business of merchandise, or "Gaozi economy," is increasingly seen as a marketing tool rather than a primary revenue source for game developers, with companies focusing more on enhancing user engagement [9][31] - MiHoYo's recent strategy reflects a shift towards cost-effective marketing, as evidenced by its absence from TGS this year, contrasting with its previous aggressive promotional tactics [11][15] - The rise of new Chinese titles at TGS indicates a growing recognition among Japanese players of these products, suggesting a shift in market dynamics and consumer preferences [13][16] Market Trends - The article notes a distinct difference in the types of games showcased at TGS compared to those in Akihabara, with a focus on new Chinese titles that are actively engaging players through innovative marketing strategies [16][22] - The upcoming release of several high-profile Chinese games is expected to revitalize the Akihabara area, which has seen a decline in its anime culture prominence [29][36] - The competitive landscape for 2024 is anticipated to be intense, with over ten major titles expected to launch, challenging the current market structure and consumer engagement strategies [38][39]

Core Viewpoint - Bilibili-W (09626) shares rose nearly 5%, reaching 216 HKD, with a trading volume of 731 million HKD, following the approval of 156 games by the National Press and Publication Administration, indicating a positive trend in the gaming industry [1] Industry Summary - The recent approval of 156 games, including 145 domestic and 11 imported, marks the third month this year with over 150 game licenses issued, suggesting a robust recovery in the gaming sector [1] - According to Kaiyuan Securities, the current valuation of the gaming sector remains attractive, and it is recommended to increase investments in this area while monitoring the performance of key new and evergreen games [1] Company Summary - Bilibili's mobile gaming revenue for the first half of the year reached 3.34 billion CNY, a year-on-year increase of 68%, driven by the success of "Three Kingdoms: Strategize the World" [1] - In Q2 2025, Bilibili's gaming business generated 1.61 billion CNY, reflecting a 60% year-on-year growth, primarily due to the strong performance of "Three Kingdoms" [1] - The company is currently testing a mini-game version of "Three Kingdoms" and plans to launch an international version in the second half of 2025, with 4 to 5 games awaiting approval, including a casual game based on the Three Kingdoms IP [1]

Core Viewpoint - Bilibili-W (09626) shares rose nearly 5%, reaching 216 HKD, with a trading volume of 731 million HKD, following the approval of 156 games by the National Press and Publication Administration, indicating a positive trend in the gaming industry [1] Industry Summary - The recent approval of 156 games, including 145 domestic and 11 imported titles, marks the third month this year with over 150 game licenses issued, suggesting a robust recovery in the gaming sector [1] - According to Open Source Securities, the current gaming industry cycle may exceed market expectations due to supply-demand resonance, and the sector's valuation remains attractive [1] Company Summary - Bilibili's mobile gaming revenue for the first half of the year reached 3.34 billion CNY, a year-on-year increase of 68%, driven by the success of "Three Kingdoms: Strategize the World" [1] - The company's evergreen titles, "Fate/Grand Order" and "Azur Lane," continue to perform steadily [1] - In Q2 2025, Bilibili's gaming business generated 1.61 billion CNY, a 60% year-on-year growth, primarily due to the strong performance of "Three Kingdoms" [1] - Bilibili is currently piloting a mini-game version of "Three Kingdoms" and plans to launch an international version in the second half of 2025 [1] - The company has 4 to 5 games awaiting approval, including a casual game based on the Three Kingdoms IP [1]

Group 1 - The company achieved revenue of 7.338 billion yuan in Q2 2025, representing a year-over-year increase of 19.8% [1] - Adjusted net profit attributable to shareholders for Q2 2025 was 561 million yuan, marking a turnaround from loss to profit [1] - The gross margin for Q2 2025 was 36.5%, an increase of 6.5 percentage points year-over-year [1] Group 2 - Mobile game revenue reached 1.61 billion yuan, in line with expectations, and grew by 60% year-over-year [1] - Value-added services revenue was 2.84 billion yuan, also meeting expectations, with an 11% year-over-year increase [1] - Advertising revenue exceeded expectations at 2.45 billion yuan compared to the consensus of 2.42 billion yuan, reflecting a 20% year-over-year growth [1] Group 3 - The game "Three Kingdoms: Strategy" has been operating steadily for one year, contributing positively to the company's gaming business [1] - The anniversaries of "Fate/Grand Order" and "Azur Lane" have boosted player engagement, with expectations for increased revenue from "Three Kingdoms: Strategy" upon its overseas launch in Q4 [1] - The company is continuously improving its product portfolio, with several upcoming games expected to pass approval for launch [1] Group 4 - The company reported a healthy growth in core users, with daily active users (DAU) reaching 108 million, up 6% year-over-year [2] - Monthly active users (MAU) reached 365 million, reflecting an 8% year-over-year increase [2] - The average daily usage time per user increased by 3.9% to 106 minutes, and the number of monthly paying users reached 32 million, up 10% year-over-year [2] Group 5 - The company’s advertising business saw a customer base growth of over 20% year-over-year, with increased advertising budgets [2] - The top five advertising categories were games, digital appliances, online services, e-commerce, and automotive [2] Group 6 - Revenue projections for the company are estimated at 30.08 billion yuan, 33.12 billion yuan, and 36.15 billion yuan for the years 2025, 2026, and 2027 respectively [2] - Adjusted net profit forecasts for the same years are 2.11 billion yuan, 2.96 billion yuan, and 3.89 billion yuan [2]

Core Insights - Bilibili (B站) reported a net revenue of 14.34 billion RMB for the first half of 2025, marking a year-on-year growth of 21.6% [2][3] - The company achieved a net profit of 207.6 million RMB and an adjusted net profit of 922.8 million RMB, both showing a turnaround from losses in the previous year [2][3] - Approximately 2 million content creators (UP主) earned income on the platform in the first half of the year, with an average income growth of 20% year-on-year [12] Financial Performance - For Q2 2025, Bilibili's net revenue reached 7.34 billion RMB, a 20% increase year-on-year [4] - The gross profit for Q2 was 2.68 billion RMB, with a gross margin of 36.5%, up from 29.9% in the same period last year, marking 12 consecutive quarters of improvement [5][4] - The adjusted net profit for Q2 was 561 million RMB, compared to an adjusted net loss of 271 million RMB in the previous year [4] User Engagement - Daily active users reached a record high of 109 million in Q2, a 7% increase year-on-year, with an average daily usage time of 105 minutes [7] - Monthly active users were 363 million, reflecting an 8% year-on-year growth, and the number of paying users exceeded 31 million [7] Revenue Breakdown - Advertising revenue for Q2 was 2.45 billion RMB, up 20% year-on-year, driven by enhanced advertising efficiency through AI integration [7] - Mobile game service revenue grew by 60% year-on-year to 1.61 billion RMB, attributed to strong performance from exclusive games [9] - Value-added services revenue reached 2.84 billion RMB, an 11% increase year-on-year, with stable growth in live streaming and paid membership services [11] Community and Content Creation - The company emphasized its focus on user-generated content (PUGV), stating that it can leverage its high-quality content to train AI for video creation [12][18] - Bilibili World and Bilibili Macro Link events attracted over 400,000 participants, a 60% increase from the previous year, highlighting the growing influence among the "Z+ generation" [13]

Core Insights - Bilibili (B站) reported a total revenue of 7.34 billion RMB for Q2 2025, marking a 20% year-over-year increase [1] - The company achieved a historical high in both net profit and adjusted net profit, reaching 220 million RMB and 560 million RMB respectively [1] - Bilibili's CEO emphasized the importance of high-quality content in driving the platform's unique community ecosystem and commercial growth [1] Revenue Breakdown - In Q2, Bilibili's revenue sources included 39% from value-added services, 33% from advertising, 22% from gaming, and 6% from IP derivatives and other businesses [2] - Advertising revenue for Q2 was 2.45 billion RMB, also reflecting a 20% year-over-year growth, with brand advertising and performance advertising growing by approximately 30% [2] - Gaming revenue reached 1.61 billion RMB, showing a significant 60% year-over-year increase, driven by long-term operational strategies [3] User Engagement - Bilibili's daily active users reached 109 million, a 7% increase year-over-year, while monthly active users hit 363 million, up 8% [1] - The average daily usage time per user was 105 minutes, which is 6 minutes longer than the same period last year [1] - The number of monthly paying users grew by 9% to 31 million [1] Creator Monetization - Approximately 2 million content creators (UP主) earned income through various channels, with significant growth in revenue from advertising and live streaming [2] - The number of UP主 earning from merchandise sales increased by 49% year-over-year, while total income from charging exceeded a 100% increase [2] Financial Performance - Bilibili's gross profit rose by 46% year-over-year, with gross margin improving to 36.5%, up from 29.9% a year earlier [3] - The company generated 1.99 billion RMB in positive operating cash flow and completed a stock buyback of approximately 100 million USD [3] - As of June 30, 2025, Bilibili held cash and cash equivalents totaling 22.29 billion RMB [3]

Core Insights - The game "Brown Dust 2" has gained significant attention in China, particularly after its presence at the BW exhibition, despite its average revenue performance in South Korea [1][5] - The game has seen a remarkable increase in daily active users, reaching a historical high of 280,000 during its two-year anniversary event, and topping sales charts in Taiwan and Hong Kong [2][4] - The game's unique business model, which allows players to draw costumes that are tied to skills rather than characters, has contributed to its resurgence [4][6] Revenue and Performance - Since its overseas launch in 2023, "Brown Dust 2" has not performed exceptionally well in terms of revenue, often hovering around the top 100 in South Korea's sales rankings [2] - The game has maintained a growing level of attention over the past two years, which is atypical for a sequel that initially struggled to build a player base [2][4] Marketing and User Engagement - The marketing strategy for "Brown Dust 2" has been aggressive, with significant promotional efforts even when the game was outside the top sales rankings, indicating a strong commitment from the developer Neowiz [6][8] - The development team has actively sought feedback from players to improve game quality and user experience, which has led to a more engaged community [19][23] Game Design and Features - The game emphasizes character depth and storytelling, allowing players to collect all characters while focusing on acquiring costumes that enhance gameplay [6][20] - The design team prioritizes aesthetic appeal in character design, with a shift in player interest towards visual attractiveness over numerical strength [24] Future Plans and Market Potential - The development team is exploring the possibility of launching the game in China, acknowledging the need for content modifications to meet local regulations [16] - There is a recognition of the potential in the Chinese market, with a significant portion of revenue coming from Chinese players, estimated at 10%-15% of overall income [22] Community and Cultural Insights - The team has noted differences in player preferences between regions, with Chinese players showing a strong interest in community interaction and feedback [29] - The success of "Brown Dust 2" is attributed to a collaborative relationship with its user base, emphasizing the importance of player support in the game's development [35][36]

Investment Rating - The report maintains a "Buy" rating for Bilibili (BILI.O) [4][6] Core Insights - The company is expected to achieve revenue of 7.33 billion RMB in Q2 2025, representing a year-over-year growth of 19.7%. The revenue breakdown by business segment includes gaming at 1.61 billion RMB (yoy +60%), VAS at 2.82 billion RMB (yoy +10%), advertising at 2.42 billion RMB (yoy +19%), and e-commerce at 480 million RMB (yoy -8%) [1] - The report highlights the strengthening of advertising infrastructure through AI, including the reconstruction of recommendation algorithms and creative generation, which is expected to enhance efficiency and effectiveness in advertising [3] - The gaming segment is anticipated to see significant growth with the launch of new games and updates, which are expected to drive user engagement and monetization [2] Summary by Sections Revenue and Profit Forecast - The projected revenue for Bilibili is expected to grow from 22.53 billion RMB in 2023 to 30.24 billion RMB in 2025, with a growth rate of 12.7% in 2025 [5][10] - Adjusted net profit is forecasted to improve from a loss of 3.41 billion RMB in 2023 to a profit of 2.15 billion RMB in 2025 [5][10] Business Segment Performance - The gaming business is expected to contribute significantly to revenue, with notable titles like "FGO" and "碧蓝航线" driving user growth and revenue [2] - Advertising revenue is projected to grow due to enhanced AI capabilities, with an expected ROI achievement rate exceeding 75% in 2024 [3] Financial Metrics - The report provides a detailed financial outlook, including expected EPS growth from -11.46 RMB in 2023 to 1.91 RMB in 2025 [5][10] - The P/S ratio is projected to decrease from 3.3 in 2023 to 2.5 in 2025, indicating a potential increase in valuation attractiveness [5][10]

Bilibili Q1 2025 Earnings Call Summary Company Overview - **Company**: Bilibili - **Quarter**: Q1 2025 Financial Performance - **Revenue Growth**: Total revenues increased by 24% year-over-year to RMB 7 billion [2][3][20] - **Advertising Revenue**: Grew by 20% year-over-year to RMB 2 billion, driven by product enhancements and infrastructure upgrades [3][14] - **Game Revenue**: Increased by 76% year-over-year to RMB 1.73 billion, attributed to the success of 'San Guo Mo Ding Tian Xia' and stable revenues from legacy titles [2][17] - **Gross Profit Margin**: Expanded to 36.3%, up from 28.3% in Q1 2024, with gross profit rising by 58% year-over-year [2][20] - **Adjusted Net Profit**: Positive adjusted net profit of RMB 362 million, with a 99% reduction in GAAP net loss year-over-year [2][22] User Engagement - **Daily Active Users (DAUs)**: Reached 107 million, a new high [4] - **Monthly Active Users (MAUs)**: Climbed to 368 million [4] - **Average Daily Time Spent**: Increased to 108 minutes per user, up from 105 minutes in Q1 2024 [4][26] Content Consumption Trends - **High-Quality Content Demand**: Growing demand for premium content, with game-related watch time up 14% and AI-related content watch time more than doubling year-over-year [5][6] - **Creator Growth**: Number of creators with over 100,000 and 1 million followers grew by over 20% year-over-year, with approximately 1.5 million creators monetizing content [10][11] Advertising Business - **Key Sectors**: Advertising revenue growth driven by games, internet services, e-commerce, digital products/home appliances, and automotive sectors [15][16] - **AI-Related Ads**: Surged by 400%, reflecting increased advertiser interest in engaging young users [16][44] - **Performance-Based Ads**: Grew over 30%, contributing significantly to overall revenue growth [37] Game Business - **Game Revenue Drivers**: Strong performance from 'San Guo Mo Ding Tian Xia' and stable revenues from legacy titles [17][35] - **Future Game Plans**: Plans to launch several new games internationally later this year, with a focus on long-term user engagement [17][33][36] Creator Community - **Monetization Avenues**: Creators earned income through ads, live streaming, e-commerce, and fan support, with fan charging income increasing by over 200% [10][11][27] - **Diverse Content**: Creators produce content across various categories, enhancing user engagement and satisfaction [7][27] Strategic Initiatives - **Partnerships**: Collaboration with CCTV for the Chinese New Year Gala boosted brand awareness and user engagement [12] - **ESG Commitment**: Published 2024 ESG report highlighting initiatives for social value and sustainability, receiving an A rating from MSCI [19] Future Outlook - **Content Quality Focus**: Plans to enhance high-quality content offerings and leverage AI for personalized user experiences [23][28] - **Advertising Growth Confidence**: Expectation of above-industry-average growth rates in advertising due to high-quality content and increasing user value [45] - **Margin Improvement**: Anticipation of gradual improvement in gross profit and net profit margins throughout 2025 [46]